Michael Saylor’s Big Bitcoin Prediction | Relai Bitcoin Podcast #90

hello everyone welcome back to the relay

Bitcoin podcast today I have an amazing

guest the legend himself Michael sailor

thank you so much for taking some time

uh to share your valuable insights and

experience with us how are you today I'm

awesome yeah thanks for having me on the

show I mean you

of course you're awesome uh you just got

like micro strategy just got um added to

the NASDAQ 100 right this is a very very

big milestone and I think this the first

time you are talking about it here uh

what does that mean to you what does it

mean to the company and what does it

mean to the Future uh like what

potential does it unlock for micro

strategy to be in this

index well I mean I view uh Bitcoin is

the digital transformation of capital

and so the entire the entire crypto

industry is about the digital

transformation of the capital

markets and um micro strategies uh the

leading uh public holder of Bitcoin and

of digital Assets Now and so getting

embraced by the NASDAQ 100 is is a

excellent Milestone it means that

they're recognizing the power of digital

assets technology they're recognizing

the potential of digital

capital I think uh it's enormously legit

enormously

legitimizing uh for Bitcoin it's uh you

know legitimizing for micro strategy and

it's very auspicious for the entire

digital assets industry and what it

means is that all of the mainstream

investors that have any exposure to

QQQ um then the general technology index

now they they're

bitcoiners and it's a way that we

introduce Bitcoin into uh the equity

Capital markets and uh conventional

technology investment

portfolios and I think those are all

just awesome things how much money will

flow into micro strategy and then

directly into Bitcoin through that

passively I I I think I read the number

somewhere is like five trillion in

passive

um investment funds will now have you

know somehow access to bitcoin through

micro

strategy I mean I think they say there's

like $350 billion doll of capital

invested in the QQQ uh ETF and there's

probably more Capital that's invested

into the NASDAQ 100 index via other

mutual funds and other

instruments uh micro strategy is going

to be the 40th uh largest company in

that index um and

I think our waiting is about 50 basis

points are in that range and so if there

were $400 billion doll of capital index

to it then maybe that means2 billion

dollar of capital might flow from those

passive instruments into the micro

strategy stock and on the other hand

you're still actively raising right I

mean it's crazy the 42 billion ATM that

you have announced just a couple of

months ago and you're already ripping

through like half of it or something

after a few months you have these three

years time basically where you can raise

and allocate this Capital to bitcoin

like maybe talk a little bit about about

that why are you doing this so quickly

what are you expecting for 2025 how much

allocation what size of allocation will

you do and and what's next like will

just keep keep raising the next ATM

or well um when we announced that plan

believe it or not that was fairly

ambitious October 30th I mean that

represented a a big acceleration in our

plans because we had uh raised about5

billion uh in the year up to that point

and we'd raised about $10 billion of

capital for the four years

previous and so for us to lay out a $42

billion Capital plan was pretty

ambitious unprecedent and you know and

if you're running a public company it's

important to under promise and overd

deliver so we felt confident that we

could do it over three years

but um when you're in a public company

uh you're in a partnership with the

capital markets and with your public

company investors

and and so um we can take a leadership

position but then the question is how

will our Equity investors react and how

will the options Market react and how

will the convertible bonds Market react

and how will the Bitcoin Market

react and how will the nation states and

the governments of the world react so um

the day after we announced that our

stock traded up I mean we out traded all

the big tech companies and we out traded

all the Bitcoin companies we out traded

Bitcoin and so um we thought that the

markets would be very supportive but we

could wouldn't be

certain right so I mean I can't very

well say hey I'm going to do it next

week maybe the markets won't let me do

it next week right so uh we created a

plan the markets were very supportive

and then at that point we knew we'd be

able to go a little bit faster than

three

years and um then uh November 5th

elections

came and if you remember Bitcoin was

like 68,000

M 68 69,000

then and uh at 8:00 p.m. on November 5th

nobody knew it was going to happen it

could have been a blue sweep it could

have been a red white and blue you know

mix it could have been a red

sweep so by 8:00 a.m. the next morning

it was clear there was a red wave and we

were going to have a very Pro Bitcoin

Pro crypto White House Administration

Senate

house and I think the capital markets

were uh emboldened by that and so we had

a um you know we had a surge of support

for the entire industry including a

surge of support for Bitcoin and of

course you know Bitcoin has gone from

68,000 and I you know is just touching

what 108 or something yeah so well I

mean I certainly can't promise that on

October 30th right so uh we react to the

capital markets and we're in partnership

with them and so so we ended up going

faster because the capital markets were

more

enthusiastic and um you know we've

raised what about

1717 billion dollar or something in the

six weeks so that's uh you know our bond

issue was over subscrib cribed um we had

never done we'd really done like a

billion doll convertible Bond before and

then we we came out of the gate thinking

maybe we would do something that was

twice as big but it became three times

as big it's crazy so uh again that's

that's um that's a negotiation with the

Capital Market so if they're

enthusiastic right and if they want to

buy the Securities then we sell the

Securities and so we went faster I I

think um

uh a foolish

consistency is the hobgoblin of small

minds right famous quote not my quote um

and uh and so we set a plan uh the

capital markets are more favorably

disclosed uh to the plan so they wanted

us to go faster so we go faster and that

um changes day by day week by

week so we're we're very programmatic

and very rigorous and very

thoughtful about what we do and we're

always looking at I'm looking at the

balance the balance between the equity

Capital markets and the options markets

and the bond markets and and the Bitcoin

markets and the Bitcoin markets are

balanced against the Futures markets

right and all of those things are in

dialogue with each other all the

time and um and uh our view is we'll

continue to pursue our strategy

in the most um in the most responsible

fashion um it's not a complicated

strategy I mean we've said it you know

for the past four years we're going to

raise money and buy Bitcoin we're not

going to sell the Bitcoin and you know

how much Bitcoin are we going to buy you

know as I've said before right as much

as as much as we can buy uh we're not

holding back um we think that's good for

Bitcoin we think that's good for the

world we think that's good for the

entire crypto economy we think that's

good for our

shareholders generally um in deciding

what kind of transactions we

do we're informed by uh a set of

analytics and maybe the most important

one is BTC yield and so BTC yield is a

kpi it's a metric where we calculate uh

the accretion in Bitcoin per share on a

fully diluted basis so if Hy

hypthetically Julian if I had a

$100 uh of Bitcoin per share and if my

stock was trading at

$100 then I could sell a billion dollars

of the stock and I could buy a billion

dollars of Bitcoin but it would be

completely neutral there would be no

accretion that would be BTC yield equals

zero if my stock had $100 of Bitcoin per

share in it and someone offered me if

they called me on the phone and said hey

I'll give you $10 billion today if you

sell me the stock at $50 a

share well that's a negative BTC yield

that's

deluded so you see if I just wanted to

raise money and buy Bitcoin I could do

it on a neutral basis or a deluded basis

but we're not stupid and our

shareholders aren't stupid you know and

so you have to assume that if you're

diluting your shareholders they will

lose their enthusiasm for buying your

stock so we don't do that and we don't

do transactions that uh are

dilutive if um if my if I could sell the

stock at $300 a share and I had $100 a

share of

Bitcoin then we do that transaction then

that's a 66% spread that means if I um

raise a billion dollars of

capital uh I'm selling a billion of

Securities back by $333 million of

Bitcoin so uh and then I'm buying back a

billion of Bitcoin so it's like I'm

selling

$333 million of Bitcoin in order to buy

back a billion dollars of

Bitcoin that means I have a net gain a

net Bitcoin gain of $666

million that's a

creative right you would do that trade

that will generate BTC yield that'll be

positive

yield

so so when we're doing these things

we're considering you know is there a

yield is it a creative now if I took

that $300 stock back by $100 of Bitcoin

and then you offered uh you said you

wanted a bond for me a convertible Bond

and if I could sell the convertible Bond

at a 50% premium then the strike price

is

$450 so that's like selling stock at4

$50 back by $100 of

Bitcoin you see if I sold a 900 $ 900

million Bond it would be back by 200

million of Bitcoin I'm selling $200

million of Bitcoin to buy back $900 900

million of

Bitcoin that's $700 million of accretion

so basically what you keep doing is you

keep increasing the exposure per share

for your shareholders the Bitcoin

exposure like shareholders get a bigger

Bitcoin exposure than if they would just

buy Bitcoin right

yeah like uh like the note the note that

I made um this morning right I just

posted this on uh on uh Twitter and let

me or X I guess is the the platform of

choice

uh I'll give you the exact numbers right

we generated a

72.4% BTC yield this year from our

treasury operations so that means you

have

72.4% more Bitcoin per share now than

you had on January 1st well when you

look at the amount of Bitcoin we had

January

1st that means it's like we generated

136,50 Bitcoin without any cost and

without any

dilution so it was like earning 136,00

65 Bitcoin and then of course what's

that worth well if you plug in

$107,000 per Bitcoin which is what it

was when I tweeted this

morning that equates to

4.66

billion for the year

[Music]

um and

uh you know 14.6 billion right what

that's it's like making 14.6 billion in

the year so so if we do uh a creative

Capital markets transactions what we're

doing is we're securitizing the

Bitcoin and we're selling

securities um at a premium to the net

asset value of the underlying

commodity and you can do this a variety

of ways you can do it by selling Equity

at a premium you can do it by selling

convertible bonds at even greater

premium you can uh also do it by selling

straight bonds if you just sell a simple

you sell a $500 million Bond and you're

paying 6%

interest well then there's no no

dilution right you didn't issue any

shares you just bought $500 million

worth of

bitcoin and there's zero share

delution you have an interest payment so

a Bitcoin generates 60% a year in uh

return and that's what it's been doing

for the past probably 10 years but for

the past four years since we've been

doing it

it's been 60% or

more so if I'm borrowing money at 6% and

I'm loaning it out to the Bitcoin

Network at 60% I'm actually capturing

90% of the yield and so I'm generating

54% in the spread so it's it's really a

BTC spread of like 90% right but you

could also say if I did a billion

dollars of that I'm making 540 million a

year on the

Arbitrage right and so so those are

three different ways that you can

generate BTC

yield right and um the company the

company is always choosing right we're

picking and choosing do we want to

borrow money from the debt markets do we

want to or let me say it a different way

do we want to sell Securities to the

debt Market do we want to sell

Securities to the convertible bond

market

equity

Market we could in theory sell

Securities to you know to insurance

companies or private investors we we

haven't but we could like I mean if an

insurance company wanted uh if they

wanted uh us to pay them x% interest and

swap that for cash we could just do a

deal directly with a large insurance

company and just do a swap or or we

could uh sell a preferred

stock where you basically just sell

preferred shares that give someone some

kind of dividend or some kind of

conversion rate and they give you money

and you give them the Preferred

Securities right so those are things

that public companies can do right I

mean literally public companies exist to

sell Securities to the public markets

yeah so we're we're uh always

considering that right and we just have

to trade off you know what is the what

is the the liability to our capital

structure and then what is the interest

expense and what is the dilution to our

common equity and then what kind of

Premium can we generate versus or spread

can we generate against the underlying

Bitcoin asset and and we pick and choose

and we do that you know we think about

it week by week day by day quarter by

quarter and and then we construct uh

those Capital Market Securities

transactions hey everyone this is Joel

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finding these very asymmetric

opportunities in the market where you

can just you know make great deals um so

but why so how should a young let's say

a young investor like Millennial

investor that starts to have money and

wants to allocate it to the Capital

Market know invest how should they think

about allocating to bitcoin directly to

micro strategy which like a Bitcoin

derivative with with some kind of a you

can think about it as leverage and other

asset classes well I think I think

Bitcoin is the risk-free rate in the

digital assets economy and so the best

way to think of it is the risk-free rate

and and by risk-free I mean well you're

accepting the the existential risk of

Bitcoin Extinction event okay so so

you've accepted that risk just like when

you cross the street you expect uh you

accept the risk of getting hit by a car

and when you live in you know Germany

you accept the risk of getting hit by a

meteor rate right so there there is that

existential extinction level risk but

once you've accepted that risk then the

risk-free rate on

um on the Fiat economy is really suur

the standard overnight funding rate it's

like

4.8% right now pre-tax and it'll be like

3.2% after tax depending on your tax

rate the risk-free rate in the crypto

economy is Bitcoin and so bitcoin's been

going up 60% a

year so you could say right now it's

about 60% as the risk-free

rate um but you know my long-term

forecast over 21 years and I'm

conservative is 20 9% AR so so when I

evaluate any investment decision that

anybody offers me I start by saying well

my hurdle rate is

29% you know tax deferred capital gain

for 21

years so are you proposing to me an

investment idea that can beat that after

tax risk adjust

so so as you can imagine right that

means you'd have to pitch me an idea

that 60% ARR right it's got to be

insanely profitable idea and even then

it would be kind of deluded and

distracting so so I tend to think you

know that the safe strategy for most

people if you don't want to take

risk and if you don't want to be an

investor then you just buy Bitcoin and

hold it um I think that the best

ideas are um are ideas built on bitcoin

so for example if you were to say to me

well that's good Mike but I don't I I

want better than

29% okay well my my question would be

okay well do you have a

house can you mortgage it if you can get

a 15-year loan for

6% well if you get if you pay 6%

interest on a 15-year loan against Real

Estate and you invested at 30 % then

you're getting uh 80% of the yield in

the you know in the swap right so that's

that's probably a that's a way to boost

your return beyond the 29% so I think

long-term cheap

debt right I mean not not short-term

debt like I'm I'm not in favor like

don't be a degenerate and go on a crypto

exchange and do a 20 to1

levered trade on bitcoin because you

might get liquidated on Saturday night

in volatility so that's kind of stupid

leverage I mean people sometimes they

people are very simplistic especially on

the web it's like they really aren't

capable of sophisticated ideas so it's

like either leverage good or leverage

bad but not really no like for example

if I give you a hundred-year loan no

recourse for 1% interest or let's make

it simple I'll give you a 100-year loan

no recourse unsecured for 0% interest

that's Leverage is that bad it's like

that's no different than me just giving

you the money right I mean so there's a

certain type of Leverage that is no

different than I'm just going to give

you10 billion dollar for free go bet it

and then after you're dead maybe it

would it will turn out to have not have

worked but how is that different than me

just giving you a hundred billion dollar

right now and saying just go spend it

and after you're dead maybe people will

disagree on what you spend it on Okay so

if the if the terms of the leverage are

good

enough that starts to look like Equity a

30 year you could have borrowed money

for 30 years for 2.75% interest two

years ago in the

US and I said mortgage your house right

and people said oh you're crazy you're

telling people to take that risk

borrowing money for 30 years at

2.75% when the when Bitcoin is going up

60% is not stupid it's actually the most

intelligent thing you possibly could

have done the stupidest thing you could

have done was sell Bitcoin at $10,000 a

coin and paid off the 3% mortgage right

yeah yeah in Europe it's sometimes even

worse like uh Adam my co-founder he

lives in France and he bought his house

with a mortgage he got a mortgage I

think it's 1 or 1.5% for

25 years and just look at the Euro

inflation right this basically in 25

years this this Dept is B basically

inflated away and he and his house has

appreciated and of course he could

probably probably the intelligent thing

to do would be to even increase this and

and put it into Bitcoin but yeah so

there are amazing opportunities when it

comes to Dept out there there I mean

look the the risk-free the cost of

capital in the conventional economy is

the S&P index it's like

15% and the last four years in the

Bitcoin economy at

60% in you can borrow money for 3% or 4%

or 6% if it's if it's not going to be

marked to Market if you if you don't

have to pay it back for a

decade okay I think that ironically

those are the safest kinds of strategies

right I mean and that's what I've done

at micro strategy right I mean so we

borrow $7.2

billion at no recourse unsecured about

four to 5 year duration 42 basis points

you know so you know it's effectively

free money yeah no strings attached I in

five years I have to be right on the

trade but you know so if you were 20%

levered you know if you if you had a

million of Bitcoin and you could borrow

200,000 at 1%

interest you know for five or 10 years I

mean I mean that's not a bad idea right

now you've got 1.2 billion worth of

bitcoin and the cost of debt is free so

so I would start by evaluating what are

your sources of cheap Capital because a

lot of uh Fiat capital in the I mean

there was a point I think when the

30-year Euro swap weight was like 20

basis points I mean like like they were

just insanely cheap you know interest

rates so if you can get cheap capital

and you can uh buy Bitcoin and you can

hold it more than four years it probably

makes sense if can hold it 10 years it's

a no-brainer yeah um when you look at

companies you know micro strategy other

companies on the Bitcoin standard their

Investments Julian right so read the

prospectus study the

filings right uh I think we have a good

capital structure right now but the

point is don't take my word for it look

at it think for yourself a lot of people

don't really think they're like oh my

God micro strategy is going to get

liquidated at Bitcoin it's like well

dude know Bitcoin could go to a dollar a

dollar of Bitcoin we're not getting

liquidated we're just going to buy all

the Bitcoin if it goes to a dollar of

Bitcoin and it's going to go back up

again right but people just say things

you're like well I heard you have some

leverage and so therefore you must be

there must be a liquidation price but

it's the same people that they look at

you know BTC yield they go oh well

that's not really yield I mean did you

even read the one page JK most of the

people that just go free they won't even

read one page like they can't get

through two paragraphs of text much less

20 pages so if you're the kind of person

that can't read uh 20

pages of investment filings you probably

shouldn't invest in stocks and you

probably shouldn't inv you should just

buy Bitcoin put it in Coal storage and

go to sleep for 30 years and you'll be

fine right uh but if you if you want if

you're an investor if you're a public

company investor and you're willing to

to read uh hundreds of pages of legal

filings then you could decide whether

you want to invest in one of those

companies they all have more

risk they all have counterparty risk

mine everybody else but of course the

point is you you should do it because

you expect more reward you

know and again here I make the point if

you literally run a hedge fund and your

job is to invest billions of dollars of

capital in public companies that's

actually what you have to do that's your

job right you're not allowed to invest

in Bitcoin a lot of times people saywell

why do people buy micro strategy instead

of Bitcoin it's because it's literally

illegal they'll get fired if they buy

the Bitcoin they can't right and so

people miss the obvious point there are

large pools of capital uh if you're a

venture capitalist you got to invest in

a company that offers you private Equity

if you're a if you're a public market

investor you have to invest in a public

company if you're a Commodities Trader

you have to invest in commodities

if you're a convertible Bond arbitrager

you have to invest in convertible bonds

right that's literally what your job is

when you raise the capital to do that

they came with strings attached the

strings are you have to use it this way

if you break the rules maybe I sue you

maybe I fire you maybe you go to jail

maybe I take the capital back and

so the people the people in the crypto

Twitter ecosystem sometimes they don't

really understand there's 500 ion

dollars of capital and it's sitting in

silos and the capital has to be deployed

in a certain way so my um my advice to a

private investor is if if if you're not

the smartest person in the

room if you're not the smart if you're

the smartest person in the room in the

market you know you are trust me like

when I'm the smartest guy in an

industry I I know I'm the smartest guy

in the industry because I know every

single other actor in the industry

and then I will actually move

aggressively but I stay in my lane and

if you invite me into a poker game of a

lot of stupid Dopey looking people in

the back room of a casino and I'm not

you know I don't know any of them and

they all start betting big I'm not the

guy that thinks I'm the smartest guy at

the table right I'm I'm thinking maybe

maybe if I think I'm the smartest guy at

the table that's because they wanted me

to think I'm the smartest guy at the

table so so you ought to stay in your

lane and um and if if you're um uh if

you're a public company investor you

know that you are and trust me they're

pretty

smart and if you're a private Equity

investor if you in if you're a venture

capitalist then you're going to want to

invest in companies that are ideally on

the Bitcoin

standard right and uh and you would if I

was a venture capitalist I would go

looking for uh a company that's a

private company that has a Bitcoin back

Treasury and then I would make a uh a

private investment in them for preferred

stock maybe Bitcoin preferred stock and

I would say here's $100 million you have

to buy at least 90 million of Bitcoin

and not sell it I want first lean on the

Bitcoin you can do whatever you want

with the other $10 million and you give

me x% of the company and then um

hopefully you go public in the next 24

months

and then their company will be valued at

three times or 4X the multiple it is

right now we're all going to make a lot

of money okay so if you're a venture

capitalist you know if you if you know

Bitcoin and if you know venture

capitalist then you should be doing

those kind of deals if you're not a

venture capitalist you should not be

doing those deals no right so I just say

to everybody make sure you stay in your

lane if you're not a professional

investor you shouldn't make investments

Bitcoin is not an investment Bitcoin is

savings you're saving your money you're

buying desirable property it's again

it's the metaphor is I give you a choice

do you want to buy 10,000 acres in

Kansas at a or or 10,000 you know 10,000

blocks of a

city at a fair price at a price that um

everybody else agrees is fair do you

want to uh buy scarce desirable property

at a fair market

Price and wait for some property

developer to develop it in the

future or would you like to take all

your money and develop a mixed use

apartment complex Hotel chain commercial

office

building even though you don't know what

you're

doing right if you have

humility you would say I'm not the

world's great greatest real estate

developer in New York City and so for me

to decide to spend all the money

developing office spaces and hotels and

nightclubs and restaurants and get all

the zoning permits and decide on the

type of concrete and hire the contractor

and deal with the

unions and rent the thing out that's

very risky I don't think you know you

either know how to do it and you know

you're the best and then you should do

it or you don't and if you don't know

what you're doing buy the underlying

property and wait for someone that knows

more than you do about how to develop

the property and let them do the heavy

lifting because one day they'll come to

you and they'll say you know I really

need that 10,000 acres that you bought

in

Kansas I'll give you 10 times as much

money for it I'm going to do all this

stuff I'm going to develop Disneyland in

Kansas okay and again if you're arrogant

you'll go no no no I'm going to develop

Disneyland in Kansas because I know more

than Disney and I know more than you and

I'm not going to sell to you okay well

that's just arrogant and stupid you

either should hold it because you don't

need to sell it and wait for someone to

develop a you know a space port on your

land or you should sell it to the dude

that's going to create Disneyland in

Kansas for 10 extra money or you should

borrow against it but know what you know

and stay in your

lane and I think um like micro

strategies doing sophisticated things

we're securitizing Bitcoin in the

capital markets we're doing it because

we can because that's our best use of

our assets that doesn't mean you

should I'm not even telling you to

invest in us if you're smart enough to

know that you should invest in us then

do it but if you don't want to do it

don't right I am saying by Bitcoin

Bitcoin is the risk-free you know return

in the market if you don't want to do

anything take the money that you don't

need for 10 years whether you can you

know if you can sell equity in your

company if you can sell if you can raise

Capital by mortgaging your company or

mortgaging your house under good

terms or if you have cash lying around

or cash

flows and you're asking me what should

you do with it my answer is simple it's

what I've said every day for the past

four and a half years you should buy

Bitcoin hold the Bitcoin don't sell the

Bitcoin period full

stop and that's for uh private investor

now if you look at companies right there

are different companies they're publicly

traded huge corporations they're big

private companies they're small private

companies smmes and then there are

startups do they have when it comes to

bitcoin treasury strategy should they

have different strategies or is it like

is it the simple strategy you just laid

out for everyone um because not all the

companies have the same um access to

Capital right or not all of them have

the the same profitability or the same

stable balance sheets

Etc I think it's the same strategy for

everybody which is you ought to

recapitalize on bitcoin make Bitcoin

your primary treasury Reserve asset you

should hold somewhere between 3 months

and 12 months of cash in uh the local

fiat currency that your liabilities are

denominated

in whether it's the Euro or the dollar

or something and then all the extra

Capital you have you should just buy

Bitcoin with it and hold

it and then if you can raise

Capital you should raise as much Capital

as you can at a fair if you can if your

company is worth 10

million then you should raise $5 million

in capital Buy $5 million of Bitcoin

hold it on your balance sheet keep

running your

company right um if you can raise 50

million you should raise 50 million if

you can raise 500 million you should

raise 500 million if you can raise 5

billion you should raise five

billion uh it's very unlikely that your

company is going to grow faster than 60%

a

year at least it's very unlikely over 21

years that you'll grow faster than 29% a

year year without any more cash without

any more Capital right

so it's possible I rather think that if

you said to me you're going to grow more

than 60% a year I would say well you

probably have to do that built on a

capital structure of Bitcoin yeah like

micro strategy is doing it but we're

doing it with Bitcoin yeah we're not

doing it against Bitcoin so I think I

think the idea is simple it's uh there's

400 million companies in the world

there's 60,000 public companies they're

all capitalized on the US dollar for the

most part or something Pegg to the

dollar MH okay just recapitalize your

company on

BTC while you're capitalized on the

dollar you are negatively polarized to

Capital that means that when you invest

your capital in treasuries or hold the

dollar you're getting minus 15% real

return

you're destroying 10 to 15% of your

Capital every year that you're holding

it it's

toxic you're pumping toxic sludge in

your veins you're drinking poisonous

water you're drinking swamp water you're

eating mud okay what's my suggestion

stop drinking swamp water stop eating

mud clean Capital you know pump Bitcoin

into your corporate veins Bitcoin is

plus 60% a year that means it's 45%

better a year than the S&P index it's

better than your own company right

Bitcoin Bitcoin is outperforming

99.9% or

99.99% of all the companies in the world

so if you have a big ego you think

you're better you think you're the

you've got this massive ego you're going

to outperform bitcoin I doubt it but

even if

so even if you thought you were going to

outperform

bitcoin the smart thing to do is next

time you raise money double the amount

of money you raise and put half of it

into Bitcoin because that's the obvious

diversification you're you're buying a

company growing 60% a year at one times

Revenue there's not a single competent

CEO in the world that wouldn't buy a

company at one 's Revenue that was

growing 60% a year that might decelerate

to 30% a year so it's a very simple

strategy recapitalize on bitcoin when

you do it you'll be positively polarized

to Capital you're creating a magnetic

field that's attracting

Capital when you become positively

polarized to Capital that means you'll

be able to raise 100 million well first

you'll raise 10 million then you'll

raise 100 million then you'll raise a

billion then you'll raise 10 billion

then you raise 100 billion you'll slurp

all the capital out of the ecosystem

that's what metap planet is doing doing

in Japan y That's What micro strategy is

doing in the US that's what Mara is

doing right now that's what Riot is

doing right luckily for you only six out

of 60,000 publicly traded companies are

doing it

aggressively and just a handful of the

400 million private companies so the big

winners are the people that flip the

polarity from negative to positive and

you do it in the next four years then

you'll I don't know I think you could

100x your company if you do it in the

next 10 years you should 10x your

company after 10 years you'll have to do

it to stay in business maybe it'll be 20

years but there's a point

when when we go from it being uh a 100x

to a THX opportunity uh to it being you

know just necessary for you not to be

fired or not to go bankrupt and I mean

the next 10 years will be good ones for

doing it but but the next four years are

extraordinarily good opportunity to do

it and that's clearly what we're seeing

right I mean these companies you just

mentioned are only a few that are now

starting to adopt the Bitcoin treasury

uh and they all go up 60 80 100% within

days after they announce these things

because they get a strategic Advantage

when they switch from the Fiat operating

system to the Bitcoin operating system

because in 10 years they will have much

more they can invest again and they can

outgrow the competition Etc and I think

just many more companies will find out

unfortunately Microsoft hasn't found out

can I can I just make this point I mean

it's just so

simple you walk into a meeting with a

bunch of potential

investors and you have a

choice you can dress up in a Halloween

Co costume that makes you repulsive

or you can be beautiful and

attractive when you go meet people and

you ask for money do you want to be

repulsive or do you want to be

attractive I mean isn't it just that

simple in life I mean it really is you

have a chance to be attractive to

Capital or you can be repulsive to

Capital right once you understand

Bitcoin you understand what are you

going to do with my money I'm going to

invested in something that loses 10% of

its value every year that sounds

repulsive what are you going to do with

my money I'm going to invest in

something that that in increases by 45%

every single year in value that's

attractive the the world is just waking

up to this idea that you can either be

repulsive to Capital or attractive to

Capital but if you look at the history

of the human race it's like I give you

fire or you can freeze to death and

starve to death I give you electricity

or you can you know have slaves turn

millstones or use donkey carts right I

give you a plane or you can get an aogo

wagon with horses and take six months to

try to cross the continent I give you a

nuclear reactor it's like unlimited

clean infinite power or you can uh burn

coal you know in a in a stove or burn

wood in the stove it's very simple

concept it's just better technology do

you want to power your company with a

crypto Reactor with Bitcoin as the

fuel or do you want to power your

company with a wood burning

stove that you know stinks up the house

and leaves you a choking fumes and chop

down all the trees and the Forest right

in order to power your your village with

a bunch of wood burning stoves it's it's

uh it's not that complicated uh as as

long as you open your eyes you know the

the actual metrics in the market are to

make it simple is if you're holding the

US dollar in your balance sheet it's

zero ARR zero volatility against itself

right like it's you hold the dollar for

a year it's zero volatile it's going to

go up zero and you know that the US

Dollar in general will lose 7% of its

purchasing power against scarce

desirable re resources every year

forever right once you understand that

idea then you look at Bitcoin it's uh

60% ARR 60

Vol for the past four years for the past

10 years I mean is 10 years enough right

after 10 years of it doing that or four

years of it doing that is that

enough you can be

you know you can be pessimistic and

conservative and say well maybe it's

only be 3030 Vol 30 AR 30 Vol okay well

so cut it in half it still double the

S&P index which is

1515 these are all straightforward

numbers right if you have twice the

performance of the S&P index and twice

the volatility of the S&P index your

options are twice as valuable you know

actually more than twice as valuable but

the equity is more than twice as I mean

everything's just twice as good it may

be you know and over time it becomes

infinitely better because that twice as

good this year compounds

exponentially

so there's uh trillions of dollars index

to the S&P

500 if I give you a security which is

twice as good how much Capital do you

think I can

get how much do you want to

buy right you're a rich man and I'm

selling you a security which which

returns onethird of the performance of

the S&P index how many of my Securities

do you want to buy none of

them now I give you a security which

returns double the S&P index how much

how many of my Securities do you want to

buy all of them right all of them

meaning I will buy up to the limits of

my risk mandate like if I have1

billion and you have uh an equity which

Returns on a risk adjusted basis twice

as much as the S&P index if your sharp

ratio is better I'll give you $500

million in a

meeting now if it's half as good I'll

give you zero dollar in a

meeting it's a very simple idea right

which is you want your company to

outperform the hurdle rate if you want

to attract the equity and if you want to

attract options Traders like if look at

look at uh Bitcoin options they trade

with 60 VA everybody wants to trade them

micro strategy trades with 120 Vol we

have a hundred billion dollar plus

options Market on micro strategy stock

you know the bond market B and if you

look at that index it's just a bunch of

corporate bonds there's no options

Market on it it's five ball why would

you want to trade five ball like there's

no there's no optionality in it right M

and so at the end of the

day if you have 60 AR 60 Vol that's like

um I'm on a train going 60 miles an hour

through Europe and I have a flywheel a

10ton flywheel and it's spinning at 60

RPM you're an

engineer okay that's

energy that's energy you can you can tap

that energy and now there's a US dollar

standard

company they have1 billion dollar in

capital that's like a nor you know a

normie standing on a plane with a 10 ton

statue next to him the World is Flat

he's not going anywhere and his capital

is just a is just a statue to look at

you understand the difference between

having a 10ton flywheel moving 60 M an

hour versus is a 10 ton statue on a

plane that's the and so like here's the

big idea Julian you can you can

transform the 10 ton statue into a 10

ton flywheel that's moving 60 mil an

hour why wouldn't

you well that's the that's the big

question why wouldn't you especially if

you have 75 billion on your balance

sheet like Microsoft I mean you you talk

to Microsoft um you tried to explain

everything that you just explained to

them um and yet they uh didn't decide to

do it actually only 0.55% of the

shareholders voted for the Bitcoin

treasury strategy 99 plus% against what

happened you can't make this stuff up

can you it's pretty hilarious okay so

I'm going to give you another

metaphor you are you are a naked

man freezing to death on a mountain

right in the Alps you know and you're

you're

Corel and you're running you're running

through the forest of Corel you know in

the middle of the winter naked and

freezing and lightning strikes the tree

next to you and it starts a fire and all

of a sudden there's a bonfire and you